How Do You Calculate The Future Value Of An Investment Using Excel?
Using Microsoft Excel to calculate the future value of a potential investment is a relatively simple task once you have learned the required formula’s syntax. Follow these easy steps while inputting your own criteria. You will soon learn how to calculate future value using Microsoft Excel. Understand the concept of future value. Future value is a Time Value of Money calculation. Future value answers questions such as, “If I invest a certain amount of money each month, given the market interest rate for that type of investment, what will my nest egg be worth when I retire?” In other words, the future value calculation measures the power of compound interest. Open Microsoft Excel. Click in the cell in which you wish the result of your formula to show. Type the following formula starter: =FV( Observe the screen tip that pops up as soon as you type your opening parenthesis. It looks like this: (rate, nper, pmt, [pv], [type]). This screen tip design helps you know which values to input. Ent
